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If You Pop, You Better Stop

October 18, 2019

Post By Sarah Dickhut

In the latest battle of branding, the Italian government has confiscated approximately 250 tubes of the “Prosecco & Pink Peppercorn” flavored Pringles
from several grocery stores in the Veneto region. The Prosecco flavored Pringles were seized on the grounds that the use of the term “Prosecco” was
allegedly not approved by the wine’s consortium of Italy. The name Prosecco has been protected by the Denominazione di Origine Controllata, or Denomination
of Controlled Origin (DOC) since 2009 and can be used only upon authorization by the region’s consortium of Prosecco producers.

Luca Zaia, the Veneto president shared a photo of the Pringles can on social
media, commenting, “we can no longer tolerate that a protected name be used without authorization . . . this is why we have been insisting for years
that we need to protect our [excellent products] from fraud, abuse and anything ‘Italian-sound,’ as it primarily damages honest producers who promote
quality and the territory.”

The Prosecco and pink peppercorn Pringles were launched last fall as part of a limited edition “Dinner Party” and “Xmas Dinner” line of flavors. Other
flavors in the line include “Cocktail Sauce” and “Pigs in a Blanket” (or “Sausage and Crispy Bacon,” depending on the region). The accused Prosecco
and pink peppercorn can features Pringles positioned in a wine glass, surrounded by red peppercorns.

Since the seizure of the Prosecco Pringles, Pringles stated: "We used Prosecco DOC as an ingredient in the aroma and the use of the product name on the
packaging was designed in line with DOC guidelines and European regulations. We have no plans to produce this variant in future.”

The fights over brand protection for Champagne, the more expensive French cousin of Prosecco, are well documented. As the popularity of Prosecco has grown
in the U.S. and elsewhere, so too have the number of producers trying to cash in on the drink’s newfound popularity. Those outside of the Veneto region
in Italy trying to market Prosecco have faced increasingly aggressive opposition: the labeling battle has been waged in Australia, Japan, India, Malaysia, New Zealand, China, and other European countries, and in the UK the trademark for “Pawsecco,”
a drink for pets, was rejected as too evocative of “Prosecco.”

The issue of brand protection becomes complex when a region of origin is involved. Geographical indications (GI) serve the same functions as trademarks,
because like traditional trademarks they are source-identifiers, guarantees of quality, and represent valuable business interests.

The United States allows for protection of geographic indications upon a substantial showing of distinctiveness. In other words, a generic geographic term
cannot be protected because generic indicators are so broad consumers typically view it as designating a category of all of the goods/services of the
same type or region, rather than a particular company. The threshold for showing distinctiveness for a geographic indication is high in the US, and
many countries do not protect geographic indications at all. Proponents for protecting “Prosecco” argue the brand has achieved such distinctiveness
(much like “Champagne”) while critics argue such protection provides Italian manufacturers with an unfair competitive edge.

Brand protection, for any business, is important in modern business, particularly when a company operates internationally. A strong brand enhances company
value, communicates company culture, and carves out a spot in the market. Allowing competitors to use or unfairly imitate your brand can lead to customer
confusion and brand dilution. It is therefore important to seek brand protection in the form of trademarks, copyrights, and other legal remedies, early
in the development of a business.

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The attorneys of McKee, Voorhees & Sease, P.L.C. designed this blog as an informational and educational resource about intellectual property law for our clients, other attorneys, and the public as a whole. Our goal is to provide cutting-edge information about recent developments in intellectual property law, including relevant case law updates, proposed legislation, and intellectual property law in the news.

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